As US equity markets prepared for Thursday's trading session, there was a notable optimism reflected in pre-market activity. Traders were busily dissecting the recently released minutes from the Federal Reserve's July monetary policy meeting. Expectations were ramped up as all eyes turned to Chair Jerome Powell, who is set to deliver a critical keynote address at the annual economic symposium occurring in Jackson Hole, Wyoming, this Friday. In pre-opening metrics, the Standard & Poor's 500 and the Dow Jones Industrial Average both recorded a modest increase of 0.1%, while the Nasdaq Composite climbed a bit higher with a 0.2% gain.
This positive sentiment was echoed in the Asian markets, which predominantly displayed green indicators, while European exchanges continued this upward trend as midday approached. The minutes from the Federal Open Market Committee's meeting, held on July 30-31, pointed to a “vast majority” of policymakers expressing that a reduction in monetary policy could be on the table in September, contingent upon new data aligning with current expectations.
This information heightens the focus on Powell’s upcoming remarks, where further guidance on the Fed's future monetary policy strategy is anticipated. In addition to the Fed commentary, Thursday's economic landscape features a series of important data releases. The weekly jobless claims report is scheduled for 8:30 AM ET, alongside the Chicago Fed National Activity Index for July, which could be crucial indicators for analysts.
Following this, the report on August purchasing managers’ index from S&P Global is expected at 9:45 AM, and the existing home sales figures for the previous month will be released at 10 AM. Another key component of the economic review includes the EIA's weekly report on domestic natural-gas supplies, which will be unveiled at 10:30 AM.
Market participants will also be attentive to the Kansas City Fed Manufacturing Index, slated for an 11 AM release, as these metrics provide insights into economic momentum. On the corporate earnings front, notable stock movements were observed ahead of the bell. Shares of Snowflake ($SNOW) saw a significant drop of 9.4% after diminishing expectations regarding product revenue in its fiscal third quarter were communicated.
In contrast, Zoom Video Communications ($ZM) experienced an increase of 2.7% following a surprising upturn in its fiscal second-quarter earnings, indicating a robust operational performance. Meanwhile, Urban Outfitters ($URBN) faced an 11% decline after its same-store sales fell short of market forecasts for the second quarter. More financial reports are on the horizon, with NetEase ($NTES), Baidu ($BIDU), Williams-Sonoma ($WSM), BJ’s Wholesale Club ($BJ), Advance Auto Parts ($AAP), Weibo ($WB), and Peloton Interactive ($PTON) scheduled to disclose their latest results before market opening.
Following the close, Intuit (INTU), Workday (WDAY), and Ross Stores (ROST) will report their earnings, contributing further to the ongoing narrative of market performance. Before trading begins, stark movements in commodities also warrant attention. Bitcoin slipped slightly, down 0.1% to a price of $61,232, while West Texas Intermediate crude saw a modest increase of 0.2%, now priced at $72.10 per barrel.
Additionally, yields on 10-year Treasuries rose by 5.3 basis points to reach 3.83%, while gold recorded a slight decline of 0.1%, settling at $2,545 an ounce. In summary, the trajectories of both market indices and access to economic data, alongside corporate earnings updates, form a cohesive picture that traders will keenly monitor as the day unfolds.
The interplay between Fed policy insights and performance indicators will be critical in shaping investor sentiment across the board..